REC. PASSPORT FEE; "OPT-OUT"                                                                   S.B. 1258:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

 

 

 

 

 

 

Senate Bill 1258 (as reported without amendment)

Sponsor:  Senator Goeff Hansen

Committee:  Outdoor Recreation and Tourism

 


CONTENT

 

The bill would amend the Michigan Vehicle Code to require an applicant for the issuance or renewal of a motor vehicle registration or for a replacement registration tab to submit a recreation passport fee to the Secretary of State unless he or she elected not to pay it.

 

MCL 257.805                                                                   Legislative Analyst:  Jeff Mann

 

FISCAL IMPACT

 

The bill would have a positive fiscal impact on the Department of Natural Resources (DNR) and a positive fiscal impact on local units of government. The bill likely would result in increased participation in the Recreation Passport program through the enactment of what is known as an 'opt-out' participation model, as opposed to current law, which is an 'opt-in' model. In fiscal year (FY) 2016-17, the Recreation Passport had a participation rate of about 33% under the current opt-in model. It is unknown how much that rate would increase under the bill's opt-out model, but the table, below provides FY 2016-17 actual Recreation Passport revenue at the observed participation rate of 33%, and compares that with hypothetical participation rates of 50% and 75%. The table also lists where those funds would be directed under statutory formula, which would remain unchanged by the bill.


 

FY 2016-17 Recreation Passport Revenue at Various Participation Rates

 

FY 2016-17 Actual Revenue (33% Participation)

FY 2016-17 Est. Revenue at 50% Participation

FY 2016-17 Est. Revenue at 75% Participation

FY 2016-17 Recreation Passport Revenue.................

$29,023,200

$43,974,500

$65,961,800

Sec. of State Administration

1,000,000

1,000,000

1,000,000

Park Improvement Account

11,580,200

11,580,200

11,580,200

State Waterways Fund........

1,114,700

1,114,700

1,114,700

FY 2016-17 Amount............ Distributed Under Formula....

$15,328,300

$30,279,600

$52,266,900

 

 

 

 

50% State Parks Capital Outlay

7,664,200

15,139,800

26,133,400

30% State Parks Operations & Maintenance......................

4,598,500

9,083,900

15,680,100

10% Local Public Recreation Facilities............................

1,532,800

3,027,900

5,226,700

7% Forest Recreation..........

1,073,000

2,119,600

3,658,700

2.75% State Parks Cultural & Historical Resources............

421,500

832,700

1,437,300

0.25% Marketing & Promotions

38,300

75,700

130,700

 

Date Completed:  12-13-18                                                    Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.